The Kuala Lumpur Regional Centre for
Arbitration (KLRCA) has reported an
exponential increase in the number of payment
disputes being referred and adjudicated with
a very high success rate in favour of “unpaid
parties”
STEP 2: HAS THE DISPUTE
CRYSTALLISED?
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Does the dispute fall within the definition of
“payment” under Section 4 of CIPAA?
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Is the aggrieved party an “unpaid party” as
defined under Section 4 of CIPAA?
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STEP 3: THE PAYMENT CLAIM
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“Unpaid party” to serve Payment Claim
under Section 5 of CIPAA on the “non-
paying party”.
● ●
Mode of service shall be strictly in
accordance with Section 38 CIPAA.
Use Form 1: Payment Claim of the KLRCA
Adjudication Rules & Procedures, Schedule
1 (KLRCA Forms).
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STEP 4: THE PAYMENT RESPONSE
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“Non-paying party” pursuant to Section 6
of CIPAA, can respond by making payment
wholly, or partly of the claimed amount, or
dispute the claim, or keep quiet.
Mode of service shall be strictly in
accordance with Section 38 CIPAA.
Use Form 2: Payment Response of the
KLRCA Forms.
STEP 5: THE INITIATION OF ADJUDICATION
● ●
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“Non-paying party” can serve a Payment
Response on the “unpaid party” within 10
working days of the receipt of the Payment
Claim from the “unpaid party”.
● ●
Claimant may serve Notice of Adjudication
using Form 3 of the KLRCA Forms on the
Respondent under Section 8 of CIPAA.
Claimant to register the Adjudication
with KLRCA using Form 3A of the KLRCA
forms together with the Non-Refundable
registration fee.
Depending on the circumstances, either
the “unpaid party” or the “non paying party”
may become the Claimant per Section 7(1)
of CIPAA.
Mode of service shall be strictly in
accordance with Section 38.
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